The monthly round-up of news, guidance, legislation, and case law from Shelter's Specialist Debt Advice Service.
News and legal updates
In this month's legal round up, find details on DRO guidance, energy debt funds, new vulnerability guidance for water customers, and new complaints guidance on economic and domestic abuse.
DROs and sending money abroad
If a debtor lives and works in the United Kingdom, payments sent outside of the UK are not an allowable expense for DRO purposes.
Under the online DRO guidance, approved intermediaries are advised to contact the DRO team and obtain confirmation that payments sent abroad are acceptable before a client applies for a DRO.
However, the DRO team has provided revised guidance to Shelter confirming that approved intermediaries no longer need to contact the DRO team prior to submission.
The case can progress through the determination process if an approved intermediary has done the checks and is satisfied those payments are legitimate and necessary payments to a close family member, such as a parent, spouse, or sibling.
Approved intermediaries must note this as part of the application or in an email.
The above guidance is now in the DRO practitioner notes.
The DRO practitioner notes are an archive of responses from the Insolvency Service in reply to queries from Shelter's Specialist Debt Advice Service.
Energy debt funds available
From the British Gas Energy Trust:
The British Gas Energy Trust, an independent charitable trust funded solely by British Gas, has two energy debt funds available this winter.
The British Gas Energy Trust currently operates two energy debt write-off funds, which are open for applications; these are the Individuals and Families Fund and the British Gas Energy Support Fund.
If you owe between £250 - £1,500 (up to £2,000 from 2 January 2024) on your energy account and you have not received a grant from the British Gas Energy Trust in the last 12 months, you could be eligible for support.
Full details of the eligibility criteria as well as information on how to apply can be found online at www.BGET.org.uk.
Extra support for vulnerable water customers
Ofwat has published new guidance setting out minimum expectations for water companies in helping vulnerable customers. The expectations include:
providing high standards of service and extra support
designing systems to meet the needs of their diverse customers
having strategies in place to support the extra help needs of their customers
Ofwat – service for all vulnerability guidance
Complaints involving economic and domestic abuse
The Financial Ombudsman Service published new guidance on complaints involving economic and domestic abuse.
The guidance sets out the types of complaints they see and their approach. It also includes case studies.
Complaints involving economic and domestic abuse
Impact report on debt repayments during cost of living crisis
The Money and Mental Health Policy Institute published a report that looks at people’s experience with consumer credit and debt repayments during the cost of living crisis. The findings show an increase in people behind on consumer credit payments. One in four people in arrears are contacted every one to two days by creditors.
The report recommends the FCA carries out an immediate review on the harm caused by high volumes of arrears communications.
Case law
Find debt case law summaries by topic on Shelter Legal.
Joint mortgages and undue influence
A joint mortgage does not automatically put a mortgage lender on notice of undue influence.
Waller-Edwards v One Savings Bank Plc
IVA termination
Syed Rahman and Kate Cook take an in depth look at reasons for IVA termination, how the termination process works, and the options for debtors whose IVA has failed.